Dorna issues COTA statement

12 September 2012

'...3four Texas MGP LLC was not able to provide such evidence to Dorna within the term granted for such purposes, and therefore Dorna had no other alternative than to terminate the February 11th 2011 Promoters Contract'

MotoGP rights holders Dorna Sports has issued the following statement, regarding the recent lawsuit filed by former 500cc world champion Kevin Schwantz against the Circuit of The Americas (COTA) being built in Austin, Texas.

The statement explains - from Dorna's point of view - why Schwantz's 3four Texas company has been left out of the latest discussions regarding the 2013 MotoGP event.

The remaining question is why 3four Texas was unable to provide Dorna with 'satisfactory evidence' of having obtained all the necessary rights to run the MotoGP event at COTA.

Dorna's statement suggests that 'no agreement had ever been entered into between 3four Texas MGP LLC and COTA'.

COTA also claims that Schwantz 'never had an agreement to conduct a MotoGP race at Circuit of The Americas'.

By contrast, Schwantz has accused COTA of 'attempting to unlawfully force me out of this project'.

The Dorna statement is as follows:

"Dorna Sports S.L. entered into a Promoters Contract with 3four Texas MGP LLC in connection with the organisation of a FIM MotoGP Grand Prix at The Circuit of the Americas, Austin, Texas, on February 11th 2011 to be effective from the 2013 season.

"Dorna understood that 3four Texas MGP LLC had an agreement with COTA to run the event.

"On the first days of June 2012, Dorna required 3four Texas MGP LLC to provide satisfactory evidence before June 28th about the company having obtained all the necessary rights, licenses and permits related with the availability of the Circuit of the Americas.

"This is a standard procedure when the Promoter is not the owner of the Circuit.

"3four Texas MGP LLC was not able to provide such evidence to Dorna (apparently no agreement had ever been entered into between 3four Texas MGP LLC and COTA, the owner of the circuit) within the term granted for such purposes, and therefore Dorna had no other alternative than to terminate the February 11th 2011 Promoters Contract due to such Event of Default. The termination was effective from July 2nd 2012.

"As Dorna Sports S.L. and the FIM are interested in a FIM MotoGP Grand Prix in Texas, COTA was then offered the opportunity to become the Promoter of such an event through the signing of a Promoters Agreement. Conversations continue at this moment."

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Most probably the circuit owner was very happy to have Kevin Schwantz promoting the project, back in 2011, and KS worked joyfully since then, without even asking for a proper contract. I'm pretty sure that, if some lawyer came along and said "come on Kevin, you do need a contract, ask for it!", he would have replied "nah I trust these people, they are happy with my work they would not do that to me anyway!"
Well obviously they did, and now that they do not need KS anymore, they kick him out of the project.
One can only be surprised that in June 2012, all of a sudden, 16 months after the Dorna-KS deal was inked, Dorna is asking KS to provide a contract between him and COTA... One can only think Dorna received a nice letter from COTA, according to which KS was not entitled to do anything on behalf of COTA or in connection with the Texas GP...
Carmelo probably tried to lead KS and COTA into an agreement, but failed, and then they had no option than finding a way out of KS's contract wi

I, too, would be surprised if this went to court. However, do not belittle an out of court settlement. It would not be entirely unreasonable. It does seem as though there is no written agreement in place, however there are allowances in contractual law for this. If both parties are acting as if there is a contract is in place, then a contract - of sorts - is in place. Also, verbal agreements are very powerful, particularly in the US, but also in Europe. The law tries to support people from being lied to and duped, and therefore Mr Schwantz may have a valid claim. Particularly since COTA would struggle to convince a judge that they did not benefit from his presence in the project. He has 'skin in the game' and has received nothing back. They will settle out of court (doesn't have to be money, could be some form of involvement in the project or even employment). Final note: to the person who suggested that KS is 'probably going for the settlement'... that's a horrible stateme